The objective of this study is to demonstrate the relationships among the severity of service failure, service recovery, customer satisfaction and loyalty towards the Vietnamese international hospital system. The research data were collected from 303 customers who have used services and experienced service failures at international hospitals. Applying Structural Equation Modeling, the study pointed out that service failure includes three dimensions, which are system failure, request failure, and behavior failure. Meanwhile, service recovery is made up of three dimensions which are distributive justice, procedural justice, and interactional justice. The severity of service failure positively affects service recovery and service recovery puts a powerful impact on customer satisfaction, thereby increasing their trust in international hospitals in Vietnam.